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October 15, 2021
2021-9024

BREAKING TAX NEWS | New York State offering limited relief for taxpayers having difficulty with Pass-Through Entity Tax election process - must act by October 15, 2021 for 2021 election

Pass-through entities in New York should note that the state is providing assistance to those that have had trouble accessing an online application for the Pass-Through Entity Tax (PTET) Annual Election, which is due today, October 15, 2021. (PTET Call Center representatives will be available on October 15 from 8:30 a.m. to midnight to provide assistance.)

Importantly, the state is also instructing those that, for one of three specific reasons, have been unable to opt into the PTET election by the October 15, 2021 deadline to "submit a question to our support team by October 15." The acceptable reasons are:

  1. You are waiting for the state to process a Form CT-6, Election by a Federal S Corporation to be Treated As a New York S Corporation, that was submitted on or before October 15, 2021.
  2. You are having trouble creating or logging in to your Business Online Services account.
  3. You receive an error message when you try to opt in through your account.

When submitting your question to the state, you must explain why you could not opt in on time. Be sure to retain documentation of your issue (e.g., a screen shot of the error message) so you are able to provide it to the state if asked.

Finally, you may not elect into PTET for the 2021 tax year if you are unable to make the PTET election by the deadline and fail to submit a question to the state "with an explanation proving you have one of the issues" previously listed.

New York State reminds taxpayers that the PTET is an optional tax and the election is irrevocable. (For details on the PTET, see Tax Alert 2021-1675.)

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Contact Information
For additional information concerning this Alert, please contact:
 
State and Local Taxation Group
For general/non-financial New York State taxpayers:
   • David Schmutter (david.schmutter@ey.com)
   • Sam Cohen (sam.cohen@ey.com)
For financial institutions that are New York State taxpayers:
   • James Thomas (James.Thomas@ey.com)
   • Matthew Musano (matthew.musano@ey.com)
   • Allen Schaefer (Allen.Schaefer@ey.com)
For real estate, hospitality, construction industry businesses that are New York State taxpayers:
   • Dale Kim (Dale.Kim@ey.com)
   • Douglas Upton (doug.j.upton@ey.com)
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

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